Stock Market Falls Apart After Chicago PMI Data

The stock market has fallen apart once again after some scary Chicago PMI data on Thursday morning. After the reading came in at 52.7 in May versus 56.2 in April, hitting its lowest level since September 2009, S&P futures plunged roughly 10 points in short order and are now testing the 1,300 area. The 52.7 reading compared to economists expectations for an increase in the index to 56.5. The Chicago PMI measures manufacturing activity in the Chicago area and is seen as a barometer for manufacturing activity as a whole. In the pre-market on Thursday, futures were trading higher, but the data release has caused the market to trade straight down in the early going. At last check, the Dow Jones Industrial Average had shed 55 points, while the S&P and Nasdaq were down 0.75% and 0.96%, respectively. The S&P is sitting just above the 1,300 level at 1,303. Look for the market to test this level on the downside, and a convincing break could lead to heavy selling throughout the day.